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Dive Briefing:
- Southern Glazer's Wine & Spirits announced last week that it had agreed to acquire New England alcohol distribution giant Horizon Beverage Group. Financial terms of the deal were not disclosed.
- Under the transaction, Southern Glazer's will assume control of Horizon's Massachusetts and Rhode Island operations, including its wine, beer and spirits portfolio. Horizon's leadership team will remain intact and will report to Southern Glazer's Eastern Region President.
- With this purchase, Southern Glazer To expand its influence in the Northeastern United States.
Dive Insight:
The acquisition represents the consolidation of several major brands across the mainstream distribution supply chain as the companies look to improve operational efficiencies and expand their reach.
Southern Glazer’s is the largest U.S. alcohol wholesaler, distributing beverages from more than 7,000 producers, from Diageo to Constellation Brands. Operating in 44 states and Canada, it distributes a wide range of products, from canned cocktails to wine to CBD beverages. Wayne E. Chaplin, the company’s CEO, said in a statement that the distributor praised Horizon’s family-owned history and commitment to innovation and sustainability.
“We expect all of our existing and new supplier partners and customers to benefit from the strengths and expertise of both companies, and we look forward to building on the excellent foundations already established in the valuable Massachusetts and Rhode Island markets,” Chaplin said.
Horizon has nearly a century of experience in the New England region, and the company said it believes the acquisition will help its supply chain capabilities.
“Southern Glazer’s is the ideal partner with the scale, scope and strength to continue to support our employees and deliver on our commitment to providing high-quality service to our customers and suppliers in New England,” said Bob Epstein, Horizon’s co-chairman. From the press release.
Miami- and Dallas-based Southern Glazer’s M&A strategy has drawn a backlash from critics, including the Biden administration’s antitrust division. In June, CNBC and Politico reported that the Federal Trade Commission was preparing a lawsuit against the retailer, which could target the company for allegedly paying “secret bribes” to its big-box retail partners.
